Bangkok--18 Oct--CIMB Thai
CIMB Thai Bank Plc. today announced the unreviewed consolidated financial results for the nine months ended 30 September 2012 which showed a year-on-year surge of net profit.
Subhak Siwaraksa, President and Chief Executive Officer, CIMB Thai Bank PCL, stated that CIMB Thai Group recorded a consolidated net profit for the nine months 2012 of THB 1,421.2 million, a year-on-year increase of THB 565.1 million or 66.0% from 3Q2011. This was mainly due to the shared gains from Thai Asset Management Corporation (TAMC) and gain on sale of investment in a CIMB Thai bank’s subsidiary.
On a year-on-year basis, consolidated operating income for CIMB Thai group increased by THB 1,776.0 million, or 38.1%, from 3Q2011 to THB 6,440.2 million. The higher operating income was mainly due to higher net interest income, net fee and service income, gains on trading and foreign exchange transactions and other operating income. With regards to net interest income, a year-on-year increase of THB 249.8 million, or 7.1% was recorded, largely underlined by loan expansion. Net fee and service income increased by THB 116.8 million, or 25.5%, mainly due to the increase in corporate finance and mutual fund fees. Meanwhile, there was an increase of THB 1,409.4 million in non interest and fee income, which amounted to a year-on-year increase of 205.4%. This largely arose from the shared gains from TAMC and gain on sale of investment in a CIMB Thai bank’s subsidiary. Net Interest Margin (NIM) over earning assets dropped to 3.20% in 3Q2012 from 3.63% in 3Q2011 mainly due to the additional deposit insurance which was introduced in May 2012. The regulation applies retrospectively on deposits held from January 2012. Additionally, NIMs were eroded due to higher deposit and borrowing (Bill of Exchanges) rates resulting from intense competition in the deposit market. As at 30 September 2012, total gross loans stood at THB 127.0 billion, marking an increase of 6.2% from end of December 2011. The loans growth was largely underlined by retail portfolio expansion. Meanwhile, Deposits and Bill of Exchanges stood at THB 150.3 billion, an increase of 11.8% from THB 134.4 billion at the end of December 2011. Given the aforementioned development in loans and deposits, the Loan to Deposit Ratio (including Bill of Exchanges) stood at 90.7%. For the nine months ended 30 September 2012, the gross non-performing loans (“NPL”) recorded a ratio of 3.5% from 3.4% in 4Q2011.
CIMB Thai’s loan loss coverage ratio increased to 88.7% as at 30 September 2012 from 81.7% at the end of December 2011, following the conservative reserve policy. As at 30 September 2012, our total provision stood at THB 4.0 billion, an excess provision of THB 1.6 billion over Bank of Thailand’s reserve requirements. On a year-on-year basis, operating expenses increased by THB 481.7 million, or 13.8%, mainly due to the increase in premises and equipment expenses & taxes and duties expenses, arising from the shared gain from TAMC and legal claims. Cost to income ratio was 61.7% in the nine months ended 30 September 2012 compared to 76.3% in 2011. Total consolidated capital funds as at 30 September 2012 stood at THB 23.9 billion, well above regulatory requirements. BIS ratio stood at 15.66%, 11.23% of which comprised Tier-1-capital.
The Company and Consolidated Financial Statement (F45-3)
CIMB THAI BANK PUBLIC COMPANY LIMITED
(In thousands baht)
The Consolidated Financial Statement Quarter 3 For 9 Months
(Unreviewed)
Ending 30 September
2012 2011 2012 2011
Net profit (loss) 1,048,428 319,703 1,421,225 856,091
EPS (baht) 0.06 0.02 0.08 0.05
(In thousands baht)
The Company Financial Statement Quarter 3 For 9 Months
(Unreviewed)
Ending 30 September
2012 2011 2012 2011
Net profit (loss) 1,000,471 313,720 1,329,852 830,646
EPS (baht) 0.06 0.02 0.08 0.05